Bitget Hot Takes (January 22 - January 28, 2024) - Market Updates

Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, which sums up BGB performance, what's new at Bitget, and the latest market movements.

The latest Bitget Hot Takes can be found here: All About Bitget | Market Updates

Central Themes

• Grayscale outflow trend continued with no signs of a slowdown, negating the inflows into all other rivals and futures Bitcoin ETFs.

• The global crypto market cap increased by 6% by the end of January 28.

• BTC climbed back to US$42K then US$43K despite GBTC outflow.

• Macro environment: FOMC on January 30-31, U.S. Job Report on February 02, ECB 'will ensure that our policy rates will be set at sufficiently restrictive levels for as long as necessary'.

Week 4: From US$39K to US$42K

A total of US$3,152,129,000 was cashed out from Grayscale Bitcoin Trust (NYSE Arca:GBTC) last week, which is almost 1.5 times higher than Week 3's net flow and brings the GBTC net flow since the ETF launch to negative US$5.3 billion. The two ETFs with an inflow of US$1 billion are Fidelity Advantage Bitcoin ETF (BZX:FBTC) at US$1,313,347,000 and BlackRock's iShares Bitcoin ETF (NASDAQ:IBIT) at US$1,005,109,000. According to etf.com , Hashdex Bitcoin Futures ETF (NYSE Arca:DEFI) saw no change in net flow in W4 2024, and top three futures Bitcoin ETFs did successfully maintain the same level of interest, depicted by the same aggregated netflow.

On Monday (January 22), Bitcoin plunged to US$39,450 - the lowest since December last year. Then before the last trading day ended, it managed to return to a daily high of US$42,209 on January 26 and thus achieved an increase of 7% within five days. This is good news for Bitcoin long-term holders, but not so much for short-term traders and speculators. It's however worth mentioning that Ethereum still persistently hovered above the US$2,000 mark as the upgrade is still taking place step by step.

Some macro events to look for this week include the FOMC on January 30-31 and U.S. Job Report on February 02, so both towards the end of the week. While crypto won't necessarily benefit from a joyful tech stock market, if any, capital situation will greatly impact the overall investment sentiment and thus affect Bitcoin prices.

Setting The Tone: Monday Performance

Bitcoin rose to as high as US$43,306 yesterday following the hope that FED will keep the rates unchanged this week. The global market cap therefore increased by 0.2% and the market sentiment is moving towards Greed again.

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